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Exit Planning
- Day Zero Guide
- Aha Planner
The Grid

A California based company on a mission to grow the wealth of everyday Americans. Zolidar is the easy button for employee ownership.

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May 2026

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Definition of Allocation Formula on The Grid Glossary

Allocation Formula

Published on 2024-06-05 | Last edited on 2024-09-07

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Definition

A requirement of ESOP plans, this formula is proportionate to each participant's compensation, per capita, and points allocation based on compensation and service. Compensation needs to be defined for allocation purposes.

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